What Does Third Year of Bull Market Mean for Economy?

The U.S. is suffering through a debt binge and it’s now going through deleveraging, which "dampens economic growth," said Allison Deans, senior advisor at Varick Asset Management and CNBC contributor.

The Health of Finance

Insight on how banks weathered the financial crisis, with James Rohr, PNC Financial Services Group chairman/CEO. and a look at the broader markets, with Alison Deans, Varick Asset Management/Neuberger Berman former chief investment officer.

“The thing that is a secular negative for the market and prevents multiple expansion is that we’re at the end of a third year bull market in bonds and the likelihood is greater for interest rates to go up and inflation to resurface and it’s hard to imagine that the P/E multiple will go up,” Deans told CNBC.

“As a result, the market’s going to be driven by corporate profits or growth of EPS in the S&P rather than multiple expansion.”

Meanwhile, Deans said she is optimistic that the turmoil in Japan, Libya and the Middle East will eventually subside and give investors a "longer-term buying opportunity."